Deutsche Bank Reiterates Buy Rating on Apollo Group (APOL)

Deutsche Bank is out with a research report this morning, where it reiterates its Buy rating on Apollo Group

; it has a $65.00 price target on the stock. The DB analysts said that the company's recently announced one time new enrollment hit from the rollout of orientation (approx. 20pts in 1Q) was not in their models, but is now easily understandable. While this reduced their estimates on the name, they still think APOL can grow on the backside, albeit from a lower than expected base. Their FY11E EPS declines from $5.53 to $4.61 (-17%) while FY12E declines from $6.37 to $5.03 (-21%). The price target was lowered from $75 to $65 due to the lower estimates. The analysts also noted that APOL's 10$ free cash flow yield should help to provide valuation support.